Author Question: Refer to Figure 14.1. The substitution effect of the wage increase on the amount of hours of leisure ... (Read 81 times)

saliriagwu · **on:** Jul 1, 2018

Refer to Figure 14.1. The substitution effect of the wage increase on the amount of hours of leisure is:

A) L1 to L0
B) L1 to L2.
C) L0 to L2.
D) L0 to L1.
E) none of the above

Question 2

The cost-output elasticity is used to measure

A) input substitution flexibility.
B) the slope of the firm's expansion path.
C) the slope of long-run average cost.
D) the slope of long-run marginal cost.
E) economies of scale.